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Optimal advertising with a continuum of goods

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Abstract

In this paper, we present a model of optimal advertising with a continuum of goodsdifferentiated by their vintage. The model is an infinite horizon/infinite dimensional optimalcontrol model and the firm advertises a continuum of goods. We prove that the goodwill ofa good accumulated through advertising does not necessarily reach its maximum when it islaunched onto the market: it can be a single peaked function of the good vintage.

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Authors
  1. E. Barucci
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  2. F. Gozzi
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Barucci, E., Gozzi, F. Optimal advertising with a continuum of goods. Annals of Operations Research 88, 15–29 (1999). https://doi.org/10.1023/A:1018922128062

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  • DOI: https://doi.org/10.1023/A:1018922128062

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